Acquisition of Destiny Homes

3 Months Ended

Jun. 27, 2020

On August 2, 2019, the Company purchased certain manufactured housing assets and assumed certain liabilities of Destiny Homes, which operates one manufacturing facility located in Moultrie, Georgia and produces and distributes manufactured and modular homes through a network of independent retailers in the Southeastern United States, further expanding the Company's reach. The transaction was accounted for as a business combination and the results of operations have been included in the accompanying Consolidated Financial Statements since the date of acquisition. The Company has not made any purchase accounting adjustments during the quarter. However, the allocation of the purchase price is still preliminary and will be finalized upon completion of the analysis of the fair values of Destiny Home's assets and specified liabilities. The Company will finalize the amounts recognized as we obtain the information necessary to complete the analysis. We expect to finalize these amounts as soon as possible but no later than one year from the acquisition date.

Destiny Homes contributed Net revenue of $9.8 million and increased consolidated Net income on the Company's Consolidated Statements of Comprehensive Income by $125,000 for the three months ended June 27, 2020.

Pro Forma Impact of Acquisition. The following table presents supplemental pro forma information as if the acquisition of Destiny Homes had occurred on March 31, 2019 (in thousands, except per share data):


	Three Months Ended
	June 27, 2020		June 29, 2019
Net revenue	$	254,801	$	273,713
Net income	16,674		21,855
Diluted net income per share	1.80		2.37